Fischbach/Lord Electric Co.Download PDFNational Labor Relations Board - Board DecisionsOct 12, 1990300 N.L.R.B. 474 (N.L.R.B. 1990) Copy Citation 474 300 NLRB No. 52 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1 In the underlying unfair labor practice case, the Board found that the Re- spondent Union violated Sec. 8(b)(1)(A) and (2) by discriminating against the individual Charging Parties in hiring hall dispatch decisions. 270 NLRB 856 (1984), affd. in relevant part 827 F.2d 530 (9th Cir. 1987). Following receipt of the Respondent’s answer to the amended backpay specification, the General Counsel filed a motion to strike the answer and motion for Summary Judg- ment. The Board granted the motions with respect to all allegations of gross backpay and to the formula for calculating net backpay. Concerning the Re- spondent’s denial of the allegation of interim earnings, the Board, as recited by the judge, remanded the proceeding for a hearing limited to taking evidence on the alleged interim earnings of the discriminatees. 290 NLRB 1165 (1988). 2 We deny the General Counsel’s motion to strike the Respondent’s brief. However, we grant the General Counsel’s motion to strike Respondent’s ex- ception 5 (the licensing issue). With regard to exception 20 (the settlement issue), although we deny the General Counsel’s motion to strike this excep- tion, we note that in addition to two of the reasons set forth by the judge in sec. A,1 of the Conclusions and Disposition portion of his supplemental deci- sion (the opposition of the General Counsel and the unreasonableness of the amount of money offered compared to the amount pled in the specification), we now also rely on a fact not known to us when addressing the request for special permission to appeal—that promptly on January 11, 1989, the second day of the hearing, the four discriminatees formally withdrew their consent prior to any execution of the previous day’s agreeement. See American Pacific Pipe Co., 290 NLRB 623 (1988). Member Devaney, in the absence of execution of the proposed settlement, finds it unnecessary to pass on the Board’s decision in American Pacific. In exception 5 the Respondent contends that the failure of discriminatees Knapp and McKenzie to meet state licensing requirements is evidence of their deliberate attempts to remove themselves from the Washington State labor market for journeymen electricians and thus precludes their entitlement to backpay. We agree with the judge that issue has been fully litigated and finally resolved against the Respondent. See 290 NLRB 1165 at fn. 5. Further, we note that the Respondent’s argument constitutes an implicit attack on the Gen- eral Counsel’s gross backpay formula as applied to Knapp and McKenzie (the earnings of those electricians dispatched in place of the two discriminatees). The exception is thus also untimely, given that the Board has already granted the General Counsel’s Motion for Summary Judgment on the issue of gross backpay amounts due. We therefore grant the General Counsel’s motion to strike exception 5. 3 The Respondent has excepted to some of the judge’s credibility findings. The Board’s established policy is not to overrule an administrative law judge’s credibility resolutions unless the clear preponderance of all the relevant evi- dence convinces us that they are incorrect. Standard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951). We have carefully ex- amined the record and find no basis for reversing the findings. We agree with the judge, for the reasons set out in sec. A,3 of the Conclu- sions and Disposition portion of his supplemental decision, that the Respond- ent is precluded from relying on any asserted deficiencies in the discriminatees’ maintenance of registration on the hiring hall referral books during the backpay period. We further note that to do so would effectively allow the Respondent to challenge the gross backpay formula in the backpay specification subsequent to the Board’s having granted the General Counsel’s Motion for Summary Judgment on that issue. In the first paragraph of sec. A,2 of the evidence portion of his supple- mental decision, the judge inadvertently stated that Robert Knapp remained in the Richland, Washington area until approximately November 1982. As the judge later correctly found, Knapp left Richland for Texas early in July 1982. 4 Interest shall be computed in the manner prescribed in New Horizons for the Retarded, 283 NLRB 1173 (1987). The Respondent shall also deduct from the total amount due each claimant any tax withholdings required by Federal and state laws. 1 The underlying case is reported at 270 NLRB 856 (1984). The Supple- mental Decision and Order also noted earlier resolution by the parties of Case 19–CA–15220, resulting in the case caption contents of ‘‘Fischbach/Lord Elec- tric Company, Inc. and Jack L. Marsh, an Individual’’ being retained only for purposes of consistency. Fischbach/Lord Electric Company and Jack L. Marsh International Brotherhood of Electrical Workers, Local Union 112, AFL–CIO and Michael S. June and Robert Albert Knapp and Thomas E. McKenzie and Jack L. Marsh and Jimmy M. Scott. Cases 19–CA–15220, 19–CB–4486, 19– CB–4496, 19–CB–4501, 19–CB–4636, and 19– CB–4650 October 12, 1990 SECOND SUPPLEMENTAL DECISION AND ORDER BY CHAIRMAN STEPHENS AND MEMBERS CRACRAFT AND DEVANEY June 7, 1989, Administrative Law Judge David G. Heilbrun issued the attached supplemental decision in this proceeding.1 The Respondent filed exceptions and a supporting brief. The General Counsel filed motions to strike certain of the Respondent’s exceptions and its brief and also filed answering brief. The Respondent filed a response to the General Counsel’s motions to strike.2 The National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board had considered the supplemental decision and the record in light of the exceptions and briefs and has decided to affirm the judge’s rulings, findings,3 and conclusions and to adopt the recommended Order as modified. ORDER The National Labor Relations Board adopts the rec- ommended Order of the administrative law judge as modified4 and orders that the Respondent, International Brotherhood of Electrical Workers, Local Union 112, AFL–CIO, its officers, agents, and representatives, shall take the action set forth in the Order as modified. Patrick F. Dunham, for the General Counsel. David E. Williams and Alex Skalbania (Critchlow & Wil- liams), of Richland, Washington; and Kenneth Pedersen (Davies, Roberts, & Reid), of Seattle, Washington, for Re- spondent Union. SUPPLEMENTAL DECISION I. INTRODUCTION DAVIA G. HEILBRUN, Administrative Law Judge. On Sep- tember 21, 1988, the National Labor Relations Board issued a Supplemental Decision and Order, partially granting Gen- eral Counsel’s pending Motion for Summary Judgment with respect to an amended backpay specification. By such action the Board narrowed matters still in controversy as to amounts of backpay due for discriminatees, as arising from a prior court-enforced Board Order.1 Further, the hearing di- rected on these narrowed matters was expressly ‘‘limited to the determination of a discriminatee’s interim earnings, in- cluding the availability to the discriminatees of interim em- ployment and their efforts to seek and retain such interim employment.’’ 475FISCHBACH/LORD ELECTRIC CO. Each discriminatee has been a journeyman electrician for years preceding April 1982. Additionally each has main- tained membership in a home local of the International Brotherhood of Electrical Workers (IBEW) from various times prior to 1982, warranting an identifying term ‘‘traveler- electrician’’ for purposes that relate to this proceeding and any associated liability to be assessed against Respondent. The backpay periods applicable to each discriminatee, to which particular ‘‘excepted period(s)’’ may also apply, are established as: Michael June 4/1/82–12/31/83 Robert Knapp 4/1/82–3/31/84 Thomas McKenzie 4/1/82–7/1/82 Jimmy Scott 4/1/82–12/31/83 The matter was heard as a further supplementary pro- ceeding in Richland, Washington, on January 10, 11, and 12, 1989. II. EVIDENCE A. Examination of Discriminatees 1. Michael June: This individual remained in the Richland area until mid-June 1982. He testified that during that time he periodically registered with Respondent’s hiring hall, plus seeking work at the ‘‘N Reactor’’ and the ‘‘FMEF’’ Hanford facility. Additionally he obtained unemployment compensa- tion because of knowing that he was ‘‘very low’’ on the hir- ing books. June had also worked as an electrician in various States prior to 1982. He once obtained work within a few days of learning about a 1980 Hanford area strike by return- ing to his home IBEW Local in Ashtabula, Ohio. June testi- fied that he believed an IBEW member could obtain work at locals which were arranging hiring by actually going there. June acknowledged that it was standard practice, and gen- eral knowledge, that local chapters of the IBEW had require- ments such as those that were in place with Respondent. His general understanding, as held during the backpay period, was that a person seeking work out of a local had an obliga- tion to resign the local’s out-of-work book approximately at least every 30 days in order to reconfirm to the local that such person was available and still seeking work in the vicin- ity. In the summer of 1982 June relocated to New York State where he ultimately found the employment now held. This followed brief employment in Erie, Pennsylvania, and con- temporary out-of-work registration with several IBEW locals of Western New York State. Late that summer he also trav- eled to Colorado, Kansas, and Arizona seeking work, in the last instance making specific application to the Arizona Pub- lic Service Commission for its Salt River projects. The em- ployment that ultimately concluded his backpay period evolved from being hired by Computer Sciences Corporation, a Virginia-based firm, for full-time work as a field super- intendent at $25,000 annually in Buffalo, New York. 2. Robert Knapp: This individual remained in the Richland area until approximately November 1982. Knapp also testi- fied that he had worked in numerous states during his career as an IBEW ‘‘traveler,’’ and that this resulted from his own desire to travel. He testified to variously searching for work before and after November 1982. Knapp testified he relied in part on a publication known as the ‘‘CUTE’’ letter. This served as a clearinghouse for electrical industry employment nationwide. He subscribed to it throughout the period of time for which he is now seeking backpay, because it provided in- formation about jobs that were available for IBEW members throughout the country. Knapp described his normal method of seeking employment, as calling friends around the country to inquire about job prospects plus reliance on the CUTE let- ter. Knapp stayed in the Tri-Cities area from the beginning of the backpay period on May 10, 1982, until sometime in July 1982, when he went to Dallas with his family, and soon found work. After being laid off there in August 1982, Knapp went to Beaumont, Texas, where his brother lived, re- maining there for a period of approximately 3 months. Fail- ing any job dispatch while in Beaumont, Knapp then moved to Florida in November 1982, where he worked for brief pe- riods of time before being laid off again. Knapp then lived with family in Florida from December 1982 until returning to the Tri-Cities area in February 1983 for the trial of this matter. He remained in the area thereafter, living in a person- ally owned travel trailer and, according to his testimony, searching nearly daily for work. He did not leave the area again until the end of his backpay period in February 1984. During this 1-year period Knapp testified to seeking work at nine prospective employers with whom he had contact during that period of time. No independent verification as to whether he had contacted the employers which he did iden- tify was produced. Knapp denied taking vacations or being disqualified for employment from injury at anytime during his backpay period until he obtained the substantially equiva- lent employment held to the present time. 3. Thomas McKenzie: This individual has a backpay period comprising only the second quarter of 1982, but from which certain excepted periods apply leaving his total practical backpay span as 5 weeks from mid-April to late May. He testified that during this brief timespan he traveled from Richland into Montana and later into California seeking work. In the process he would register with IBEW hiring halls of the vicinities reached, and generally seek to find work through information available from friends within the industry. McKenzie’s reference for this activity was the ‘‘tramp guide’’ listing for nationwide IBEW locals with use- ful information pertaining to each of them. He also testified to checking about work out of the Tri-Cities hall of the Iron Workers Union. McKenzie testified to having a career as an IBEW jour- neyman wireman ‘‘traveller,’’ causing him to work ‘‘prac- tically clean across the United States in the process of his jobs.’’ He testified to personally harboring a desire to travel which led to ‘‘an agreement’’ with his wife regarding this practice of traveling from place to place to obtain work. McKenzie admitted to performing many home tasks during the first 3 weeks of his backpay period. After finishing these tasks McKenzie traveled to Montana to look for work on May 5 and 6, 1982. He then returned to the Tri-Cities, re- maining until the latter part of May when he went to Cali- fornia. Neither trip resulted in finding work. McKenzie testified that during the time that he was in the Tri-Cities during the backpay period he sought employment by ‘‘looking for work around.’’ However, he did not recall any specific employers to whom he had applied, nor did he 476 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD have any job applications that he testified to filling out dur- ing this period of time, claiming they had been destroyed in a fire. He also testified to having visited an Iron Workers local in the Tri-Cities area during this period of time, but could not identify it by number or location. 4. Jimmy Scott: Scott had also worked as an IBEW ‘‘trav- eler’’ in a number of States prior to 1982. Scott also sub- scribed to the ‘‘CUTE’’ letter, as well as a separate IBEW newsletter in which job information was carried. Scott did not seek work at IBEW locals outside the State of Wash- ington during the backpay period, except for occasionally calling some out-of-state locals on the telephone. This indi- vidual remained in the Richland area until mid-1983. Scott’s primary explanations regarding his efforts to seek employment emphasized that he was on Local 112’s out-of- work book during the backpay period, and that he had ap- plied in Richland for sales and/or maintenance jobs. Scott listed 31 specific prospective employers where he had sought work during this 19-month period of time. However he did not produce any independent records that he had actually made application for jobs at these places of prospective em- ployment. Moreover, Scott admitted that he did not have any previous job experience of any consequence in sales and/or maintenance areas of employment, and that he would have had to be trained to perform those types of jobs. He testified that with financial assistance from a brother he traveled to his home State of South Carolina where he commenced residence at his parents’ home and used that as a base for seeking work. Scott described registering at IBEW locals in the general vicinity and to obtaining short employ- ment in South Carolina and in Augusta, Georgia. He later made contact through a local business agent to the IBEW in New York City, and from this obtained substantially equiva- lent employment which warranted a termination of his back- pay period. B. Respondent’s Witnesses George Elgin testified that he has been Respondent’s es- tablished business manager, financial secretary, and general overseer of registration documents comprising the record of Respondent’s past hiring hall procedure. He verified several features of hiring hall operations as existing during the years 1982 into 1984, including the existence of posted guidelines and the practice whereby registrants had to reconfirm their availability monthly. Elgin testified to having the ledger-type sign-in book and confirmation book of Respondent examined by dispatching employees of Respondent’s office for pur- poses of this case. Laurie Johnson testified that she has been a secretary in Respondent’s office since at least 1982, and has actively par- ticipated in the hiring hall operations since that time. Johnson testified to the specifics of the reconfirmation practice as ex- isting during years of the backpay periods, and to the roll- back procedure whereby registrants would be relisted at the bottom of their particular hiring book after three occasions of unavailability for work by declination or failure of at- tempted contact. Johnson had examined hiring book one on which all discriminatees were signed at various times during their respective backpay periods, and testified from personal knowledge to the occasions when rollbacks occurred. Contentions General Counsel contends there has been no disturbance shown in the amount of backpay owed each discriminatee when controlling doctrine for compliance issues is applied. Specifically, General Counsel argues that the burden of proof carried by a Respondent with respect to the diligence of a search for work, or the existence of available work during relevant times, has not been remotely met in any instance here. Respondent contends first that an accord and satisfaction had been achieved, which should have been, and now must be, recognized in resolution of these claims. Alternatively, Respondent argues both that available work in the Richland vicinity was shirked by the discriminatees, and that in each case their failure to achieve substantially more offsetting in- come was self-induced. III. CONCLUSIONS AND DISPOSITION A. Preliminary 1. Accord and satisfaction In American Pacific Pipe Co., 290 NLRB 623 (1988), the Board dealt with a claimed accord and satisfaction which was there argued by an employer defending against a back- pay claim as ‘‘barring litigation’’ on the issue of its liability. The Board applied Independent Stave Co., 287 NLRB 740 (1987), the thrust of which was described as follows: [We] recently held that in evaluating non-Board settle- ments the Board would examine all the surrounding cir- cumstances including whether the Charging Party, the Respondent, and the discriminatee had agreed to be bound, and the General Counsel’s position regarding the settlement; whether the settlement was reasonable in light of the alleged violation, the risks of litigating the issue, and the stage of litigation; whether fraud, coer- cion, or duress were present. On this basis, and considering the facts in American Pacific, the Board offset backpay due the involved discriminatee by the amount paid as an intended accord and satisfaction. The Board pointedly wrote that the claimant and his union had ‘‘voluntarily agreed’’ to the exchange, that the parties exe- cuted their settlement agreement ‘‘about a month before the backpay hearing began,’’ and that the settlement was reason- able considering inherent uncertainties always present in liti- gation. Other collateral factors were also noted in passing. In so holding the Board expressly overruled Michael M. Schafer, 261 NLRB 272 (1982), and Stevens Ford, 271 NLRB 628 (1984), to the extent inconsistent. Here circumstances of the ‘‘settlement’’ so earnestly claimed by Respondent were in the nature of a continuum spanning both days of hearing. The distance from which these four discriminatees assembled, the tendering of more than simple business records for their attention, and the final unanimous position taken by the group that the amount of- fered, singly or collectively, was inadequate in their view, represents a highly distinguishable situation from that of Independent Stave. These factors, coupled with General Counsel’s resolute opposition to the settlement, creates a fail- ure of Respondent’s efforts to meet freshly declared stand- 477FISCHBACH/LORD ELECTRIC CO. ards in matters of this kind. Notably the Board wrote in American Pacific that the ‘‘amount of money’’ is at least ‘‘one of the many factors to be considered’’ in a determina- tion of whether to honor a private agreement between parties. Independent Stave. The extraordinary direct rationale of American Pacific plainly overrides any contrary implications as contained in the BNA treatise edited by Charles J. Morris, and Central Cartage Co., 206 NLRB 337 (1973), a case that is readily distinguishable. Accordingly, I reaffirm my refusal to approve this settlement agreement by which $125,000 was assured for payment, and thus treat the claimed liability of Respondent strictly on the limited issue stressed by the Board in its Supplemental Decision. 2. Licensing The first of two subsidiary points made by Respondent concerns the lack of State of Washington electrician licenses on the part of both Knapp and McKenzie during the backpay period. In footnote 3 of its basic Decision and Order the Board addressed this point, saying that in raising the subject Respondent was ‘‘vague’’ and ‘‘not [even] credible.’’ As a result the Board held that the ‘‘licensing requirement was not a factor’’ in the assessment of whether unfair labor practices had been committed. The situation plainly constitutes res ju- dicata as to this defense, and on that basis I must reject Re- spondent’s argument as so premised. 3. Hiring hall It is equally unavailing for Respondent to argue that each discriminatee failed to seek, or failed to remain eligible for, work that might have materialized via the hiring hall proce- dures of registration, maintainence of current status, avail- ability when called, and the general dispatching pattern after requisitioning of wiremen by employers. Here the testimony of Elgin, and the detailed recapitulations of Johnson, must subordinate to the legally settled conclusion that none of the four individuals could expect, or would receive, fair and law- ful processing through the hiring hall. Again, therefore, this entire avenue fails to assist Respondent in meeting its burden of proof on the limited issues present. The fact that various discriminatees tried Respondent’s hiring hall during their backpay period would not constitute a waiver of rights or binding condonation of what has been judicially declared as illegal. Here, too, Respondent meets the blocking effect of res judicata principles. B. Central Issues There is a common thread to a threshold, or tentative, view of the nature of undertakings by each claimant fol- lowing the generally collective experience of discrimination against them all in the eventful spring of 1982. That is their personal views on how to progress through life in a personal, family, occupational and financial sense. In each case an am- bulatory, practically nomadic, history was shown; with each discriminatee given to, comfortable with, and having seen success in, a darting, questing, dogged style of locating, as- suring and fulfilling work in their trade. In this process the entire country was their job market, both from the standpoint of where and how they spent younger years, and in terms of past employment, brief or long-term, acquired and com- pleted. In this sense any standard of behavior, or more par- ticularly diligence as the law would require in any situation, must take into account these allowable individualities. Fur- ther, the perhaps quaint utility of the CUTE letter, and the vagaries inherent in word-of-mouth, ‘‘grapevine-type’’ leads to where an experienced wireman might find rewarding work, are at least appropriate to each claimant’s normal ef- forts and expectations. I couple these preliminary observa- tions with a blanket credibility assessment that each discriminatee appeared by their testimony to be earnestly and honestly recounting the facts and motivation of their required search for interim employment. It is well-established that a Respondent may mitigate its backpay liability by establishing how backpay claimants ‘‘willfully incurred’’ losses by ‘‘clearly unjustifiable refusal to take desirable new employment.’’ Phelps Dodge Corp. v. NLRB, 313 U.S. 117, 199–200 (1941). To establish such mitigation the applicable burden is to demonstrate that the individual ‘‘neglected to make reasonable efforts to find in- terim work.’’ NLRB v. Miami Coca-Cola Bottling Co., 360 F.2d 569, 575–576 (5th Cir. 1966). Success is not the test of sufficiency in a discriminatee’s search for interim employ- ment. Rather, the law ‘‘only requires honest good faith ef- fort.’’ NLRB v. Cashman Auto Co., 223 F.2d 832, 836 (1st Cir. 1955). A summarizing statement reads: While the evi- dence may leave a question of whether [the backpay claim- ant] could have been more diligent in seeking other employ- ment, the highest standard of diligence is not required and doubts must be resolved against Respondent.’’ Otis Hospital, 240 NLRB 173 (1979). In determining if a backpay claimant made reasonable search for employment, the entire context of the claimant’s search over the backpay period must be con- sidered Highview, Inc., 250 NLRB 549 (1980); Saginaw Ag- gregates, 198 NLRB 598 (1972); Nickey Chevrolet Sales, 195 NLRB 395 (1972). Uncertainty in the evidence is to be resolved against the wrongdoer. NLRB v. Miami Coca-Cola Bottling Co., supra. Here each discriminatee made logical, appropriate and pru- dent efforts to mitigate the damages flowing from Respond- ent’s discrimination against them. If these efforts were less than urgent, spotty as to venturing outside their accustomed patterns, or unimaginative, these characteristics do not offset the essential sincerity of their search. A wide geographical area was used in each case, and a necessary balance struck between family and career needs. Overall there was a perme- ating earnestness to each discriminatee’s efforts, and if this assessment is shaky with regard to McKenzie, his situation was of such short duration that principles of allowable read- justment take up any slack. The evidence sufficiently also shows that employment opportunity was more limited during the general 1982–1984 timespan than during earlier instances of job acquisition to which Respondent points. This condition was markedly so in the Tri-Cities area from the credited evi- dence, and was persuasively shown to have also been found in other regions of the country to which the job searches were carried. Cf. Delta Data Systems Corp., 293 NLRB 736 (1989); L’Ermitage Hotel, 293 NLRB 924 (1989). Accordingly, I find in terms of the Board’s limiting direc- tion for hearing that no evidence has been convincingly ad- vanced to warrant diminishing backpay due any of the four claimants. As plainly outlined in the amended backpay speci- fication this includes amounts due in unpaid contributions to 478 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1 If no exceptions are filed as provided by Sec. 102.46 of the Board’s Rules and Regulations, the findings, conclusions, and recommended Order shall, as provided in Sec. 102.48 of the Rules, be adopted by the Board and all objec- tions to them shall be deemed waived for all purposes. the national electrical benefit fund (NEBF), and the value of assets distributed in the course of its dissolution. On these findings of fact and conclusions of law and on the entire record, I issue the following recommended1 ORDER Each individual shall be paid by Respondent Union, its of- ficers, agents, and representatives, the amounts respectively shown below after their names, plus further interest as accu- mulating and owing at the time of payment. Michael S. June $90,188.89 Robert Albert Knapp 76,704.33 Thomas E. McKenzie 5,013.41 Jimmy M. Scott 69,923.52 Copy with citationCopy as parenthetical citation